Arbeitsbericht Nr. 115

Jungius, Tom: Dual-Class Shares and the Value of Voting Rights – A Large Case Study among German Private Shareholders

Arbeitsberichte des Institut für Unternehmensführung, Ruhr-Universität Bochum, 115 (2015)


In contrast to numerous prior studies, this paper sheds light on dual-class shares and the value of corporate voting rights from an individual’s perspective by analyzing a large and unique data set collected from a survey among almost 425,000 German retail investors. The results give unprecedented insight into determinants influencing their general inclina-tion to purchase non-voting shares and their perception of the value of voting rights. While not solving the long-discussed puzzle of the value of voting rights, the results may offer new implications for explaining the pricing differences between voting and non-voting shares and help to understand the composition of preferred shareholder populations in regard of their demographic and socio-economic characteristics as well as different in-vestment strategies. Thus, this study adds to both strands of research regarding retail inves-tors and the value of voting rights and may serve as a starting point for future research in these fields.